Cryptocurrency is an intangible asset, exponentially growing in popularity. With the media attention and buzz surrounding crypto, you may be wondering how you can get a piece of the pie.
Luckily, there are ways you can dip your toes into the world of crypto without having to put up your own capital. Read on to learn how you can begin your journey through the world of crypto by reviewing 5 different ways to get free cryptocurrency!
What Is Cryptocurrency?
Cryptocurrency is a digital and non-tangible asset secured through blockchain technology. This makes it extremely difficult to counterfeit and creates a more secure way to make transactions online.
The creation of cryptocurrency allows for users to make transactions quicker, more securely, worldwide, and with peace of mind knowing that all activity will be logged onto the blockchain with little to no risk of the data being pirated. A defining factor of crypto is that it is a decentralized currency, meaning that all users have the same access to all the data; rather than being regulated and overseen by a single organization.
How Does Investing in Cryptocurrency Work?
Investing in cryptocurrency is similar to how you would invest in any other security like stocks or index funds. The most common way to invest would be through an exchange like Coinbase or TradeStation.
It is also recommended that you have a digital wallet to store your crypto in, to ensure maximum security. To begin investing you simply purchase the cryptocurrency you are interested in through an exchange, store it in your wallet, then sell it when the cryptocurrency hits a price you are comfortable with selling at.
Pros & Cons of Cryptocurrency
Like any investment, cryptocurrency comes with many benefits as well as downsides. One of the major benefits of crypto is that it is highly encrypted and secure. However this means that if you forget the passwords to one of your accounts, you will not be able to retrieve it through someone else; this is both a pro and con for some.
Other benefits include its anti-inflation characteristics, it’s ability to transfer money instantaneously, and the fact that crypto is mainly decentralized. Some downsides to consider include that it is a highly volatile market, meaning there is more risk involved; and the fact that because the market is decentralized, there is potential for illegal activity to occur.
5 Ways to Get Free Cryptocurrency
If you are interested in beginning your journey in the cryptocurrency market, here are 5 easy ways to get free crypto!
Learn and Earn Free Crypto
Learn and earn crypto programs are an excellent way to begin your crypto journey. Many exchanges have programs where you can learn about crypto through their platform and get paid in crypto once you have completed the short lessons.
CoinBase is one of the leading crypto exchanges out now and has an excellent, easy to follow, learn and earn program that will reward you with free crypto straight into your account! Other platforms like Binance, CoinMarketCap, and Cake DeFi also have learn to earn programs you can benefit from.
Sign Up Bonuses
As an incentive to attract more investors, many crypto exchanges offer free crypto as sign up bonuses. To maximize your rewards, you can also open several accounts that give you a sign up bonus in free crypto to start building a portfolio.
For example, Gemini offers all new users $10 in free Bitcoin once they deposit $100 into their account. Other platforms provide higher stake rewards like BlockFi who’s offering up to $250 in free Bitcoin for new users who maintain certain account balances through a tiered rewards system.
Do some research and compare different bonuses offered by different exchanges to see which one you would benefit from the most.
Earn Through Referrals
Another way to earn free crypto is through referrals. Many crypto platforms and exchanges offer free crypto incentives to their users to refer new users.
Oftentimes the user signing up and the user sending the referral will benefit. Different companies offer different benefits; some will even give you free crypto just for signing up on their platform.
For example, Gemini has a program where you and a friend both get $10 in free Bitcoin when you refer a friend to sign up and they make a trade. Other platforms have programs like CoinBase’s where you get a free $10 for every $100 in trades a referred user makes.
Crypto Airdrops & Giveaways
Crypto airdrops and giveaways are becoming increasingly popular as they are utilized as a marketing tool for many creators of coins and NFT projects. Blockchain apps have also been known to airdrop free crypto to their early adopters when they drop a new coin.
The strategy here is to join up and coming blockchain apps in hopes of the creators releasing a coin that they will airdrop to their earliest supporters/users. Another strategy would be utilizing twitter to find users who are doing giveaway contests or just flat out giving away free crypto in hopes of some of that luck returning to them in the future.
For example, NFT trading platform LooksRare recently dropped a coin and rewarded early users with an airdrop. Depending on the amount of trades a user made on the platform, was contingent with the amount airdropped; some users were gifted up to $8,000 USD.
Earn Cash Back in Crypto Through Crypto Credit Cards
Crypto cash back is another excellent way to earn free crypto. Just like many traditional credit cards, crypto credit cards offer various benefits and rewards through unique systems.
For example, BlockFi gives 1.5% back in crypto on every purchase made with their card. Different platforms offer different benefits so be sure to review each one carefully to maximize the benefits you’ll receive.
Starting Your Crypto Journey
As you can see, there are several incentives created by crypto platforms to start investing in cryptocurrency. Taking advantage of these benefits can be a great way to begin your investment journey and help minimize a bit of the risk.
If you are interested in investing in crypto but don’t know where to start, start by trading small amounts of free crypto you acquire to see if this is the right investment for you. As always if you really aren’t sure where to begin, a financial advisor is a good place to start.
Learn more about financial advisors and how you can benefit from them, here.
Frequently Asked Questions
Coinbase, eToro, and Binance are all great platforms that give away free cryptocurrency.
There are several ways to get free crypto. Whether it be through a sign up bonus, referring new users, or earning cash back in crypto.
The blockchain alone does not give out free crypto. However companies on blockchains, like Coinbase, do.